LABL Inc.

Overview Key strengths Key risks Leading market positions in food and beverage, wine and spirits, and in-mold labels; tied for the largest global market share in home and personal care. Sustained high leverage following the Fort Dearborn Holding Co. Inc. merger, including forecast S&P Global Ratings-adjusted debt to EBITDA near 10x in 2024. Broad operational scale across a diverse array of label production technologies. Financial-sponsor ownership, which, in our view, increases the likelihood for aggressive financial policies, such as prioritizing external growth and shareholder rewards over debt reduction. Operations in recession-resistant end markets, including consumer packaged goods (CPG), food, beverage, and health care. Volume declines continued to improve sequentially through the third quarter, with pro forma revenue down 1.0%, and

...Consumer demand has recovered slower than we previously anticipated, with a return to volume growth not expected until the fourth quarter. Volume declines continued to improve sequentially through the third quarter, with pro forma revenue down 1.0%, and actual revenues flat compared with the same prior year quarter. We previously expected volume growth in the third quarter, as inventory destocking decelerates and the company realizes the incremental contribution from its October 2023 acquisition of Karydakis IML S.A. However, volumes in the...

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